My pomegranite is lively and extremely healthy. It produced alot of flowers, around 30 I would say (It is only about 2 years old so the flowers completely covered it).

But, the flowers are slowly falling off and producing no fruit. What is happening? The plant looks like it is great shape.

Some trees take a few years before they produce. It might still be too young.
Check the following link for more information:
http://www.agmrc.org/agmrc/commodity/fr ... rofile.htm